WarrCloud Inc.

One of the biggest surprises in recent years is how often warranty performance is misunderstood, or completely underestimated, within dealership operations. Despite its scale and impact, many operators were unaware of just how quickly warranty revenue has been growing. With warranty increasing by 19% last year compared to only 2.2% customer pay growth, and total U.S. warranty volume rising from $25 billion to $29 billion, the importance of understanding warranty dynamics has never been clearer.

Warranty continues to be the dealer’s second-largest receivable, yet many stores underestimate how much revenue remains tied up simply because repair orders aren’t being closed on an optimal schedule. With manufacturers now requiring supplemental documents, rental receipts, battery test slips, and even photos, warranty management has shifted from a simple claim-submission task to a complex operational system that demands real visibility and discipline.

Many warranty opportunities remain untapped simply because dealers aren’t aware of programs they qualify for. Shuttle reimbursement is a perfect example: over $30,000 in annual revenue is accessible for Ford and Lincoln stores that claim it correctly. At the same time, capturing every tenth of technician labor not only boosts warranty margins, but also addresses a key retention challenge - technicians feeling underpaid during warranty work.

Big thanks to Car Dealership Guy for another great conversation on the CDG Podcast. Our CEO, Jim Roche & CDG's Yossi J Levi covered a lot - from the $29B warranty opportunity to how AI is transforming the OEM Warranty Process. It’s always great talking fixed ops, automation, and growth & we appreciate the opportunity to share how WarrCloud is helping dealers capture every dollar they’ve earned. The full episode is live! Stream it now - YouTube: https://lnkd.in/eM-hwFPG Apple Podcasts: https://lnkd.in/eq25r3XU Spotify: https://lnkd.in/eHg6yGqz

When you combine AI and outsourcing, you get smart sourcing. What we’re doing is taking a process that has literally remained unchanged for the last 80 years. We’re automating it and allowing the dealer to hand that work over so they can focus more on the guest experience. By doing this, you recover more warranty dollars, save time every day, put more focus on the customer experience, and lower your costs.

In the last year, OEM warranty spend in the US has increased by over +19%, from $25 billion to $28 billion. That’s a huge jump. We’re seeing a clear long-term trend: customer pay is decelerating, even as warranty costs accelerate. And that’s a bit of a canary in the coal mine for dealers - a signal that it’s time to re-evaluate how they approach fixed ops, with a particular focus on warranty.